It’s a change in Node Pool earnings, not liquidity pools. Basically the 57% APY from Node Pool will go to 37% tomorrow, to reflect the increase in Nodes on the network. Constant is lowering to 35% APR.

The number of network validators (Nodes) and the number of transactions/trades have converse relationships on validator earnings, and Node Pool is a reflection of those earnings. So we can expect Node Pool earnings to fluctuate, especially as the network goes through pretty big growth spurts (hundreds more nodes, thousands more transactions, etc).

It’s late now, but tomorrow there’ll be more core team input on the change.

I think it bears repeating: the price of PRV is still growing. When I started, PRV cost 50 cents. Now it’s 85 cents. Although I’m saddened by the decrease in node pool rewards from 57% to 37%, I’m heartened by the increase in PRV value of 70%.

Yeah, a decrease is never fun, but 37% is still great compared to other staking options.

And increasing validators (resulting in decreased node pool earning or less frequent node selection) is a required step of growing the network. Soon enough, if we can share Incognito with as many people as possible we’ll hit a point of usage growth that can help balance it out, which will be awesome. I don’t know about that necessarily with regard to the Node Pool, but for Nodes certainly. At the end of the day, Node Pool is a bonus feature, another way to lower the barrier-to-entry of validation. Being a Node Operator and a PRV user is the real end-all.

g 37% will decrease in time…what is the format of increased validators vs decrease percentage of staking rewards? Is i

No there is no absolute minimum. If 1k nodes came online tomorrow the expected returns would go to sub 1% probably. But in order to support 1k nodes you need to stake 1,750,000 PRV… But to acquire that much PRV you would have to drive price up a ton higher to draw out other sellers.

The team said in the beginning that they want locked PRV to remain at 30% of total supply. Right now there are 1650 nodes which is 2,887,500. Total supply right now is 9,883,879 PRV, which is right on the money for their goal to hit 30% locked.

@andrey I asked this on the podcast, but where does all of the PRV the team mines go? I need to check the pod, but I remember that you said it went to the DAO? Are there official numbers on this? What about the 65% of tokens taken from pnodes? Does that go to the DAO as well?